GREY:LGLTF - Post by User
Comment by
jumpth3sharkon May 28, 2014 9:13am
227 Views
Post# 22604446
RE:This Week's Earnings Report
RE:This Week's Earnings Report
Excellent progress has been made by management. While the bottom-line isn't quite up to snuff. I am happy with the top-line growth.
Q12014 was affected by some-one time costs associated with the acquisition of SEC which we won't see in further quarters. I expect the financials to continue to improve as we go through the year, and assuming management just works on consolidating recent acquisitions we should see steady and tangible Q/Q growth.
While revenues from the new student housing and franchising programs were not that high, this was really their inaugural quarter, so keeping that in mind, I'm happy with the results. There is definitely a demand for housing from students, and going forward, LOY should be able to transition a significant amount of its new students into their housing.
I also liked this line at the end of the release:
"With a cash balance of $3.1-million as at May 26, 2014, and anticipated profitability, the company has the funds to meet all of its operating obligations and to continue growing by acquisition without raising additional capital."
So unless there is a major and favourable M&A opportunity, I don't expect Loyalist to complete any more raises this year and dilute our shares.